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Chris Sieroty

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Station reaches deal to keep Nevada property

11 Mar 2011

By Chris Sieroty
LAS VEGAS, Nevada -- Station Casinos Inc. reached a deal Thursday with creditors that will allow the Green Valley Ranch Resort, Spa and Casino to remain part of the casino company's extensive Las Vegas holdings.

Station Casinos LLC, the company created to acquire most of the properties and assets of the bankrupt Station Casinos, said it reached an agreement to acquire the hotel-casino in Henderson for $500 million.

"We are pleased to have reached agreement with the first lien lenders to acquire Green Valley Ranch Resort," said Frank Fertitta III, chairman and chief executive officer of Fertitta Entertainment, in a statement.

The agreement means 17 of the 18 casinos owned and managed by Station Casinos before the bankruptcy will remain under the company's control.

Station Casinos' Aliante Station property could be taken over by its creditors, including TPG Capital and Apollo Global Management LLC. A company spokeswoman declined to comment.

The restructuring agreement includes a voluntary prepackaged bankruptcy reorganization filing for the Green Valley Ranch Resort. Financing for the purchase will include new lines of credit from Deutsche Bank and JP Morgan, as well as "new equity" from Fertitta Entertainment, a company spokeswoman said.

At the time of the restructuring, Green Valley Ranch Resort's debt was about $600 million. In a statement, the company said more than 90 percent of the dollar amount and a majority of the holders of the first lien debt of Green Valley Ranch have agreed to support the restructuring plan.

Green Valley Ranch was developed by affiliates of Station Casinos and the Greenspun Corp., which is based in Henderson. The 496-room resort opened in December 2001.

Lori Nelson, a Station Casinos spokeswoman, said details are still being worked out, but the deal includes an option for the Greenspun Corp. to maintain an equity stake.

"This transaction will allow us to keep Green Valley Ranch Resort in the Station Casinos' family, retain all of our team members, and continue to serve our loyal guests, all of which are very important to us," Fertitta said.

The Las Vegas-based casino company expects to file the reorganization plan with the U.S. Bankruptcy Court in Reno next month. Subject to regulatory approvals, the reorganization was expected to be finalized by the end of this year's second quarter.

Station Casinos filed Chapter 11 bankruptcy in July 2009 after its debt was increased by a November 2007 leveraged buyout by the Fertittas and Colony Capital LLC. The company is expected to exit bankruptcy protection later this year.

A restructured Station Casinos is being led by Chairman Frank Fertitta, his brother, Vice Chairman Lorenzo Fertitta, Colony Capital and several lenders. Greenspun is also a partner in Aliante Station.

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